Economy
IFC Tasks African Policymakers to Use Population to Grow Digital Economy
By Adedapo Adesanya
The International Finance Corporation (IFC) has called on African government and policymakers to utilise demographic competitive advantage for digital economy expansion, with Nigeria positioned as the ground zero base for activity.
The Regional Director for Central Africa and Anglophone West Africa at IFC Nigeria, Ms Dahlia Khalifa, said this on Wednesday in Lagos at the Gulf Information Technology Exhibition (GITEX) Nigeria 2025 conference.
Ms Khalifa noted that across Africa, the digital economy was expanding at remarkable speed powered by internet adoption, mobile penetration, and a generation of young innovators rewriting its future.
She added that the demographic realities in Africa meant that its total population would grow from 1.5 billion to 2.5 billion over the next 25 years, noting that the population increase will bring 600 million youths, possibly entering the job market, charting the future leading to the fastest growth in the world.
“With more than 60 per cent of Africans under the age of 25, and smartphone adoption rising steadily, Africa is home to one of the largest pools of digital natives in the world.
“Over the past decade, Africa’s digital economy has been one of the fastest growing in the world and is quickly becoming a centre of attraction.
“By 2030, it is projected to contribute to about $180 billion to Africa’s Gross Domestic Product (GDP),” she said.
The IFC regional director further said that in Africa, Artificial Intelligence (AI) was not just about efficiency but about transformation.
According to her, AI holds extraordinary promise that can enable Africa scale traditional barriers to growth, and accelerate progress across sectors such as health, education, agriculture, finance and business.
Ms Khalifa however, warned that unless Africa invested in infrastructure, including energy, broadband, digital connectivity and skills, the benefits of AI could bypass the continent.
She quoted IFC’s recent report titled Digital Opportunities in African Businesses that stated that the digital transformation could benefit over 600,000 formal businesses and 40 million micro-enterprises.
This development, she said, would boost productivity, raise wages, and create better quality jobs and livelihoods for all.
“This is why the role of the private sector and public-private dialogue is decisive.
“Infrastructure is the foundation, but entrepreneurship is the engine and to seize this opportunity, we need reliable broadband, robust data centres, modern digital infrastructure, and more energy, particularly clean energy that is sustainable.
“We need investment in skills and training programmes that prepare Africa’s youth for the jobs of today and tomorrow.
“We need partnerships between governments, the private sector, and international institutions to create the right policies, foster trust, and mobilise capital at scale,” she said.
She revealed that the IFC was committed to helping to unlock the future of Africa’s digitalisation.
Ms Khalifa noted that over the last decade, IFC had financed over $6 billion in Africa’s digital infrastructure, from data centres to fibre networks to affordable broadband.
“By harnessing AI and digital technology responsibly and building the right partnerships, Africa can shape a digital economy that is inclusive, innovative, and globally competitive,” she said.
On her part, Ms Trixie Lohmirmand, Executive Vice President, Dubai World Trade Center, lauded the zeal and resilience of Lagos startup innovators, saying they thrived in spite of power issues and developing infrastructure.
She described start-ups in the country as the fastest rising, fastest growing emerging stars in the world, beating Mumbai, Sao Paulo, Turkey among other nations.
“Nigeria scales with resilience and there is mega high speed space for technology to thrive in Lagos and Nigeria.
“In Lagos where the unicorns are coming out from, they build new infrastructure and industry all together, nothing ever before and we would not deny Nigeria access to thrive,” she said.
By Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
